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Having a PAN card is essential for every Indian citizen contributing to the economy. The government introduced it under Section 139A of the Income Tax Act to overcome the limitations of the old General Index Register (GIR) system.
Unlike the GIR system, the PAN card provides a unique identification number to every taxpayer in India. This unique number links all tax-related details of an individual or entity, making it easier to track taxes under a single identification system. In this article, you will understand what PAN is, why it is important, who needs it, and how to apply for it quickly and easily.
What is the full form of PAN?
The full form of PAN is Permanent Account Number. It is a 10-digit alphanumeric code issued by the Income Tax Department of India. A PAN includes both letters and numbers and is provided in the form of a physical PAN card.
This card contains important details like the PAN number, individual or organization name, date of birth (DOB), and photograph. Besides being used for tax purposes, the PAN card also serves as a valid identity proof and is required for various financial and regulatory purposes.
What is Permanent Account Number?
The Permanent Account Number (PAN) is a unique 10-digit alphanumeric identification number issued by the Income Tax Department of India. It is given to individuals, businesses, and organizations and acts as a national identification number for tax purposes. PAN is mandatory for people who pay taxes or carry out financial transactions above a set limit in India.
PAN is issued in the form of a laminated card that displays the holder’s name, photograph, PAN number, and other basic details. It serves multiple purposes like filing tax returns, opening bank accounts, buying financial products, and applying for loans.
PAN also helps the government track financial activities and prevent tax evasion or money laundering. This identification number is given to individuals, companies, partnerships, trusts, and other legal entities. It is unique and non-transferable, meaning each person or organization gets only one PAN number.
In India, PAN is issued by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance. The National Securities Depository Limited (NSDL) manages the PAN database and distribution of PAN cards. To apply for a PAN, people must fill out a simple application form and submit it with supporting documents through NSDL or an authorized center.
Do Check: List of all Important Full Forms
PAN Card Number Format
The PAN card contains important personal details such as the holder’s name, date of birth (DOB), and father’s name, following KYC (Know Your Customer) regulations. For non-individual entities like companies or trusts, it shows the registration date instead of DOB.
Information on a PAN Card Includes:
- Name of the individual or entity
- Father’s name (for individuals)
- Date of birth or date of registration
- Unique 10-digit PAN number
The PAN number follows a 10-character alphanumeric structure like AAAPL1234C.
- First four characters are English letters.
- Next four characters are numbers.
- Last character is an English letter.
- Example: ABCPNXXXXC
Meaning of the Fourth Character (Status Identifier):
- P = Individual
- C = Company
- H = Hindu Undivided Family (HUF)
- A = Association of Persons (AOP)
- B = Body of Individuals (BOI)
- G = Government Agency
- J = Artificial Judicial Person
- L = Local Authority
- F = Firm/LLP (Limited Liability Partnership)
- T = Trust
Meaning of the Fifth Character:
- For individuals, it shows the first letter of their surname or last name.
- For non-individuals, it represents the first letter of the entity’s name.
Last Characters in PAN Format:
- 6th to 9th characters are numbers ranging from 0001 to 9999.
- The 10th character is a check alphabet used for verification purposes.
This structured format ensures that every PAN number is unique, traceable, and easy to verify.
List of Required Documents for PAN Card Application
1. Documents for Individuals (Indian Citizens)
A. Proof of Identity (Any One):
- Aadhaar Card
- Voter ID Card
- Passport
- Driving License
- Government ID Card
- Photo ID card issued by a recognized educational institution (valid)
B. Proof of Address (Any One):
- Aadhaar Card
- Passport
- Voter ID Card
- Electricity/Water/Telephone Bill (within last 3 months)
- Bank account statement
- Credit Card statement
- Gas connection bill
C. Proof of Date of Birth (DOB) (Any One):
- Birth Certificate
- Matriculation Certificate (10th Class)
- Passport
- Driving License
- Aadhaar Card
- Pension Payment Order
2. Documents for Minors:
- Aadhaar Card of minor
- Proof of Address and Identity of the parent/guardian
3. Documents for Companies:
Copy of Certificate of Incorporation issued by Registrar of Companies
4. Documents for Firms/LLP:
Partnership Deed or LLP Registration Certificate
5. Documents for Trusts:
Trust Deed or Certificate of Registration Number from Charity Commissioner
Types of PAN cards
PAN cards are issued to different types of entities in India, and each type is identified by a unique code within the 10-digit PAN number. Below is a simple explanation of the common PAN card categories:
- Individual: Issued to both resident and non-resident individuals, including minors.
- Hindu Undivided Family (HUF): Issued to a Hindu family unit governed by Hindu Law.
- Company: Issued to registered companies operating in India.
- Partnership Firm: Issued to partnership firms registered under the Indian Partnership Act.
- Limited Liability Partnership (LLP): Issued to LLPs registered under the Limited Liability Partnership Act.
- Trust: Issued to trusts established under the Indian Trusts Act.
- Society: Issued to registered societies involved in social or charitable activities.
- Association of Persons (AOP): Issued to groups formed for a specific activity or project.
- Body of Individuals (BOI): Issued to a group of individuals collectively managing a specific task or function.
This classification ensures every entity in India has a unique identification number for tax purposes.
How to apply for Permanent Account Number (PAN)
- Go to the NSDL (tin-nsdl.com) or UTIITSL (pan.utiitsl.com) website.
- Choose ‘Apply for New PAN (Form 49A)’ (for Indian citizens).
- Fill in your details like name, DOB, address, Aadhaar number, etc.
- Upload Proof of Identity, Proof of Address, and Proof of Date of Birth.
- Pay the application fee (₹93 for Indian address, ₹864 for foreign address).
- Submit and receive an Acknowledgement Number.
- PAN card will be sent to your postal address after processing (within 15–20 days).
Importance of a PAN card
The PAN card is an important part of India’s financial system. Here’s why it is essential:
- Tax Filing: Anyone with taxable income must have a PAN card to file income tax returns.
- Financial Transactions: PAN is required for many high-value financial transactions like opening bank accounts, investing, and large purchases.
- Loan Applications: Banks and financial institutions ask for PAN when you apply for loans.
- Identity Verification: PAN helps the government verify identities and track financial activities, reducing tax evasion and money laundering.
Read More Articles for Full Form
FAQs on PAN Full Form
What is a PAN Card?
A PAN Card is a 10-digit alphanumeric ID issued by the Income Tax Department of India for tracking taxes and financial transactions.
How to Link My Aadhaar Card and PAN Card?
You can link Aadhaar with PAN via the Income Tax e-filing website or by sending an SMS to 567678 or 56161 using your registered mobile number.
How to Apply for a PAN Card?
Apply online via NSDL or UTIITSL portals, or offline through authorized PAN centers by submitting Form 49A and required documents.
Why is a PAN Card Important?
PAN is essential for filing taxes, high-value transactions, opening bank accounts, and serves as an official identity verification tool.
